Compensation Strategies for Attracting and Retaining Top Talent

Do you find it a challenge to attract and hire the best talent? Recruiting is highly competitive, and the strength of your team can make or break your business. The best employees want greater compensation, but at the same time, you need to balance your budget to stay profitable. 

As a leading staffing agency, CulverCareers understands how arduous the hiring process can be. Many of our clients need help attracting new talent and retaining key employees. Poorly structured employee compensation plans are a key contributor. Our experience has taught us that you must offer outstanding compensation to land exceptional performers. Yet, it can be challenging to balance hiring top talent with your budget and business goals. 

Here, we guide you through compensation strategies to attract exceptional new employees. 

Our experts help companies develop realistic, attainable, and attractive compensation plans, and we also offer comprehensive employee retention services. 

How do you identify top talent in sales? 

Sales recruitment involves many considerations, such as sales performance, communication and relationship skills, technical skills, professional development, leadership potential, and desirable character traits. To attract and retain the most qualified sales professionals, you need a strategic compensation plan.

Why Do Employees Quit?

It’s one of the most important questions a business owner or hiring manager can ask themselves. Why do employees leave companies or change jobs? Mostly, it’s money. The Pew Research Center found that for 63% of workers who left their jobs during the COVID-19 pandemic, low pay was one of the key reasons employees quit. In 2024, nearly half of workers are considering quitting, and inflation is to blame. Some who switched jobs during the pandemic are struggling to support themselves.   

With a low 4.1% unemployment rate, companies are in a fierce battle to land top talent. For employees thinking of quitting for a new job, the pay must be substantial enough to risk switching careers and workplaces. Good pay is essential for passive candidates already working in the industry but who might be persuaded to leave for a better financial offer. 

Importance of Compensation Strategy

Good compensation strategies are vital to attract superstar candidates. Researching your industry to see what other employers pay is crucial so you can be competitive but not overpay needlessly. If you cannot match what competitors offer, fringe benefits and other compensation perks may be an effective way to make the position more attractive.

To avoid going over your budget, carefully study your business performance and gauge it against the average pay in your market. Using real numbers, you can make logical choices regarding competitive compensation.

Average pay varies by location. What’s considered a competitive salary in Biloxi, Mississippi, may not be as attractive in Boston, Massachusetts. In 2024, the cost of living in Biloxi is 15% lower than the national average, while the cost of living in Boston is 120% higher. Examine your competitors’ salary structures in a specific region and craft your plan based on this information.

Fringe Benefits Packages

What benefits matter most to employees? The most desired benefits are insurance, paid time off, and a retirement plan. When hiring a C-Suite executive, it is especially critical to consider adding benefits to the compensation package, even though it can raise your salary expenses by 20-30% annually. Account for this expenditure in your annual salary budget.

Insurance Coverage

Insurance is a vital part of compensation strategies. The details of your insurance coverage will depend on your business goals and operating budget. Think about what your competitors offer their workers. Most businesses offer medical, dental, or vision insurance, or all three.

Paid Time Off

To entice candidates and retain employees, consider offering paid time off. Since the pandemic, job searchers often prioritize flexible workplaces and time with their families. Consider similar businesses and their time off practices. Use this data to create a competitive plan that includes paid vacation, holidays, sick days, and maternity leave. Allowing team members time for personal care shows that you value their contribution.

Retirement Plans

A retirement plan is also essential for job seekers, especially for executives since custom deferred compensation plans can help them save money for retirement savings. A 401k plan is also beneficial in attracting long-term professionals who are planning for their futures.

How Can CulverCareers Help? 

With more than three decades of recruiting experience, CulverCareers goes far beyond helping companies hire top talent. We also offer various employee hiring and retention services. We’ve seen how compensation packages can help attract the most dedicated, skilled professionals. With our insider knowledge of industry averages, you can develop competitive salaries and benefits for all employee levels.

Employee Retention Counseling

Do you need help in keeping your key employees? CulverCareers offers Employee Retention Consulting. We’ll work with your HR department to incentivize your team members so you can expand your company. Attractive compensation leads to employee satisfaction.

Employee Engagement

As part of our employee retention services, we’ve developed platforms like our Employee Engagement Surveys so you can keep tabs on workplace morale.

If you are struggling to find top talent or retain them, contact us and see the difference professional services can make for your team.